In an environment-friendly move, SkyWest, Inc. SKYW inked a Memorandum of Understanding (MoU) and non-binding Letter of Intent to buy 100 of Eve Air Mobility’s electric vertical takeoff and landing aircraft (eVTOL). In addition, the deal will focus on developing a network of deployment throughout the United States. The financial terms of the deal were, however, not disclosed. Post this announcement, shares of SkyWest moved up 7.7% to $40.56 on Dec 21 from Dec 20’s closing price.
– ZacksChip Childs, SkyWest’s president & CEO, stated, “We believe Eve’s 100% electric eVTOL aircraft will provide the benefits of zero carbon emissions, enhanced urban quality of life, and increased connectivity. Together through this partnership, Eve, Embraer, and SkyWest will help propel sustainable aviation forward.”
Under this deal, SkyWest and Eve have intended to develop a portfolio of services-based capabilities to optimize eVTOL performance in key early adopter cities that will be prioritized for initial Urban Air Mobility operations. To support this intent, SkyWest and Eve have decided to dedicate a team to focus on vehicle design, vertiport specifications and the certification roadmap for eVTOL operations.
Such eco-friendly moves by SKYW are highly commendable and expected to reduce carbon emissions in the airline space.
Zacks Rank & Stocks to Consider
SkyWest currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks in the broader Zacks Transportation sector are J.B. Hunt Transport Services, Inc. JBHT, Landstar System, Inc. LSTR and C.H. Robinson Worldwide, Inc. CHRW.
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. While the Dedicated Contract Services (DCS) unit is being aided by fleet productivity improvement and rise in average revenue producing trucks, the Integrated Capacity Solutions (ICS) unit is gaining from favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 40.8% in the past year. J.B. Hunt currently carries a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefitting from a gradual recovery in the economy and freight market conditions in the United States.
LSTR’s top and the bottom line increased substantially in each quarter from third-quarter 2020, owing to robust revenues in the primary segment — truck transportation. LSTR has rallied 26.6% in the past year. Landstar sports a Zacks Rank #1.
The long-term expected earnings per share (three to five years) growth rate for C.H. Robinson is pegged at 9%. CHRW benefits from higher pricing and volumes across most of its service lines. Total revenues surged 42.4% year over year in the first nine months of 2021, with higher revenues across all the segments.
CHRW’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has moved up 8.4% in the past year. C.H. Robinson currently sports a Zacks Rank #1.
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SkyWest (SKYW) Stock Increases Following Deal with Eve Air
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